Minnesota service contract template

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How Minnesota service contract Differ from Other States

  1. Minnesota law requires service contracts to include specific disclosures about consumer rights and cancellation policies, which may differ from other states.

  2. The Minnesota Service Contract Regulatory Act mandates registration for providers and administrators not always required elsewhere.

  3. Minnesota imposes additional rules on contract renewal and prohibits certain automatic renewals without explicit client consent.

Frequently Asked Questions (FAQ)

  • Q: Is a written service contract required in Minnesota?

    A: Though not always mandatory, a written service contract is highly recommended to outline service terms and protect both parties.

  • Q: Can a Minnesota service contract be canceled by the customer?

    A: Yes, most contracts must provide a cancellation right, typically within a specific time frame after signing, as per state law.

  • Q: Does Minnesota law require special clauses in service contracts?

    A: Yes, Minnesota requires disclosures about consumer rights, warranties, and cancellation terms to be included in each service contract.

HTML Code Preview

Minnesota Service Contract

This Service Contract ("Agreement") is made and entered into as of [Date] by and between [Service Provider Full Legal Name], located at [Service Provider Address] ("Service Provider"), and [Client/Customer Full Legal Name], located at [Client/Customer Address] ("Client").

Basic Information:

  • Contract Name: [Contract Name]
  • Date of Signing: [Date]
  • Service Provider Full Legal Name: [Service Provider Full Legal Name]
  • Service Provider Contact Information: [Service Provider Address, Phone Number, Email]
  • Client/Customer Full Legal Name: [Client/Customer Full Legal Name]
  • Client/Customer Contact Information: [Client/Customer Address, Phone Number, Email]

Description of Services:

  • Scope of Work: [Detailed Description of Services]
  • Deliverables: [List of Deliverables]
  • Project Milestones: [List of Project Milestones with Dates]
  • Timelines: [Project Start Date] to [Project End Date]
  • Exclusions/Limitations: [List of Exclusions/Limitations]
  • Options:
    • Option A: Include specific service element: [Description of Service Element]
    • Option B: Exclude specific service element: [Description of Service Element]

Term:

  • Fixed Term: From [Start Date] to [End Date]
  • Ongoing (Evergreen): Effective [Start Date] and continues until terminated.
  • Renewal/Extension:
    • Option A: Automatic Renewal: This Agreement will automatically renew for successive terms of [Duration], unless either party provides written notice of non-renewal at least [Number] days prior to the end of the then-current term.
    • Option B: Extension Clause: This agreement may be extended upon written mutual consent between the parties.
    • Option C: Transition Clause: Upon termination, the Service Provider will assist Client for [number] days to transition the services to another provider.

Compensation:

  • Service Fees: [Dollar Amount or Rate]
  • Payment Schedule: [Payment Schedule Details, e.g., Monthly, Upon Completion, etc.]
  • Methods of Payment: [Accepted Payment Methods, e.g., Check, Credit Card, ACH Transfer]
  • Invoicing Procedures: [Details on Invoice Submission and Content]
  • Late Payment Penalties: [Interest Rate or Late Fee Amount]
  • Reimbursement of Expenses: [Details on Reimbursable Expenses and Approval Process]
  • Fee Structure Options:
    • Option A: Hourly Rate: [Hourly Rate]
    • Option B: Per-Project Fee: [Fixed Fee per Project]
    • Option C: Milestone-Based Fee: [Fee per Milestone]
    • Option D: Retainer-Based Fee: [Retainer Amount and Services Covered]

Taxes and Billing:

  • Responsibility for Taxes: [Party Responsible for Collecting/Remitting Taxes]
  • Applicable Taxes: [Sales Tax, Use Tax, Other Minnesota State Taxes]
  • Tax ID (if applicable): [Tax ID Number]

Responsibilities and Obligations:

  • Service Provider Responsibilities: [Detailed List of Service Provider Responsibilities]
  • Client Responsibilities: [Detailed List of Client Responsibilities, including Cooperation, Information Provision, and Access]
  • Performance Standards/KPIs: [List of Key Performance Indicators]
  • Optional Detailed Lists:
    • Option A: Detailed Service Provider Responsibilities:
      • [Responsibility 1]
      • [Responsibility 2]
    • Option B: Detailed Client Responsibilities:
      • [Responsibility 1]
      • [Responsibility 2]

Modification/Amendment:

All modifications or amendments to this Agreement must be in writing and signed by both parties.

  • Options:
    • Option A: Simplified Amendment Process: Amendments may be made via email confirmation.
    • Option B: Formal Amendment Process: Amendments must be executed with the same formality as this original agreement.

Confidentiality:

Obligations regarding confidential information, data security, and privacy.

Compliance with Minnesota Government Data Practices Act (if applicable).

  • Options:
    • Option A: Standard Confidentiality: Each party shall keep the other party’s proprietary information confidential.
    • Option B: Enhanced Confidentiality: Includes specific details about data encryption and access control.
    • Option C: Data Processing Addendum: Incorporates a Data Processing Addendum for compliance with privacy laws if handling personal data.

Intellectual Property Ownership:

Ownership of intellectual property created during service provision.

  • Options:
    • Option A: Work-for-Hire: All intellectual property created shall be owned by the Client.
    • Option B: Assignment: Service Provider assigns all rights to Client.
    • Option C: License Agreement: Separate license agreement to govern use of intellectual property.

Non-Compete, Non-Solicitation, and Non-Disparagement:

Non-Compete: The Service Provider agrees not to compete with the Client within [Geography] for a period of [Duration] after termination of this Agreement. Consideration for this clause is [Consideration].

Non-Solicitation: The Service Provider agrees not to solicit the Client's employees or customers for a period of [Duration] after termination of this Agreement.

Non-Disparagement: Neither party shall disparage the other.

Indemnification, Hold Harmless, and Limitation of Liability:

Indemnification: [Party A] shall indemnify and hold harmless [Party B] from any claims arising from [Circumstances].

Limitation of Liability: The total liability of [Party] shall be limited to [Dollar Amount]. This limitation does not apply to gross negligence or willful misconduct.

Insurance:

  • Required Insurance:
    • General Liability: [Coverage Amount]
    • Professional Liability/Errors and Omissions: [Coverage Amount]
    • Workers' Compensation: As required by Minnesota law.
    • Cyber Liability: [Coverage Amount]
  • Additional Insured: [Party to be named as Additional Insured]
  • Options:
    • Option A: Waiver of Insurance: Client waives the requirement for Service Provider to maintain [Specific Insurance Type].
    • Option B: Certificate of Insurance: Service Provider shall provide Client with a certificate of insurance evidencing required coverage.

Termination:

  • Termination for Cause: Either party may terminate this Agreement for cause upon [Number] days written notice.
  • Termination for Convenience: Either party may terminate this Agreement for convenience upon [Number] days written notice.
  • Termination by Mutual Agreement: This Agreement may be terminated by mutual written agreement of both parties.
  • Settlement of Outstanding Obligations: Upon termination, all outstanding obligations shall be settled within [Number] days.
  • Minnesota Specific Considerations: Notice and “cure” periods shall be as specified in this clause and allowed under applicable Minnesota law.

Dispute Resolution:

  • Negotiation: Parties agree to first attempt to resolve any disputes through good faith negotiation.
  • Mediation: If negotiation fails, parties agree to submit to mediation in [City, Minnesota].
  • Arbitration: If mediation fails, parties agree to submit to binding arbitration in accordance with the rules of the American Arbitration Association.
  • Governing Law: This Agreement shall be governed by the laws of the State of Minnesota.
  • Venue and Jurisdiction: The venue for any legal action shall be [County], Minnesota.
  • Options:
    • Option A: Litigation: If arbitration is unsuccessful, either party may pursue litigation in a court of competent jurisdiction.
    • Option B: No Arbitration: All disputes shall be resolved through litigation.

Force Majeure:

  • Covered Events: Acts of God, war, terrorism, natural disasters, and other events beyond reasonable control.
  • Notification Procedures: Party experiencing force majeure shall notify the other party within [Number] days.
  • Rights of Parties: Obligations are suspended during the force majeure event.

Independent Contractor Status:

The Service Provider is an independent contractor and not an employee of the Client.

No partnership, joint venture, or agency relationship is created.

Deduction of Taxes: Service Provider is responsible for all federal, state, and local taxes.

Compliance with Minnesota Employment Standards: Service Provider is solely responsible for compliance with all applicable Minnesota employment laws with respect to its employees and subcontractors.

Compliance with Laws:

Both parties shall comply with all applicable federal, state, and local laws and regulations.

  • Options:
    • Option A: Minnesota Labor Codes: Compliance with Minnesota labor codes regarding worker classification.
    • Option B: Licensure Requirements: Service Provider warrants it holds all necessary licenses required to perform the services in Minnesota.
    • Option C: Industry Regulations: Compliance with all applicable [Specific Industry] regulations.

Recordkeeping and Audit Rights:

Service Provider shall maintain accurate records of services performed.

Client shall have the right to audit such records upon reasonable notice.

Record Retention Period: [Number] years.

Assignment and Delegation:

Neither party may assign this Agreement without the written consent of the other party.

  • Options:
    • Option A: Automatic Assignment: This agreement may be assigned upon merger, acquisition, or sale of substantially all assets.
    • Option B: No Assignment: No assignment of this agreement is allowed without the written consent of both parties.

Notices:

All notices shall be in writing and delivered by [Email/Postal Mail/Hand Delivery].

Notice Addresses: As stated in the Basic Information section.

Effective Date: Notice shall be effective upon receipt.

  • Option:
    • Electronic Communications: Parties agree to use only electronic communications.

Severability:

If any provision of this Agreement is held to be unenforceable, the remaining provisions shall remain in full force and effect.

Entire Agreement/Merger Clause:

This Agreement constitutes the entire agreement between the parties and supersedes all prior agreements and understandings.

  • Options:
    • Option A: Inclusion of Exhibits: This agreement includes the following exhibits [List of Exhibits], which are incorporated by reference.
    • Option B: Exclusion of Prior Agreements: This agreement supersedes all prior agreements, whether written or oral.

Waiver:

Failure to enforce any provision of this Agreement shall not be deemed a waiver of future enforcement.

  • Options:
    • Written Waivers: All waivers must be in writing and signed by the waiving party.

Headings and Interpretation:

Section headings are for convenience only and shall not be used in interpreting this Agreement.

  • Option:
    • Construction Against Drafter: This Agreement shall not be construed against the drafter.

Minnesota-Specific Disclosures:

[Required Disclosure Statement, if applicable]

Data Security/Privacy/HIPAA Clauses (if applicable):

[Detailed Clauses regarding data security, privacy, and HIPAA compliance, if applicable]

  • Option A: Basic Data Privacy Clause
  • Option B: HIPAA Compliance Addendum

Statutory Addenda/Notices/Supplement Schedules (if applicable):

[List and Inclusion of Required Addenda/Notices/Schedules]

Signature Block:

____________________________

[Service Provider Printed Name]

[Service Provider Company Name]

[Service Provider Title]

Date: ______________

____________________________

[Client/Customer Printed Name]

[Client/Customer Company Name]

[Client/Customer Title]

Date: ______________

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